Library Archive
CWAG Newsletter – June 2023
This Update includes the following
Renter’s (Reform) Bill 2023
The Renters (Reform) Bill published on 17th May 2023 aims to tackle issues in the private rented sector in England. It includes a number of the measures set out in the June 2022 White Paper ‘A fairer private rented sector’ as well as fulfilling the 2019 Conservative Manifesto commitment to abolish so called ‘no fault’ evictions in England.
The Bill includes the following measures:
- The abolition of assured shorthold tenancies and with them, Section 21 ‘no fault’ evictions. Tenancies in the private rented sector will become more secure monthly periodic assured tenancies with no end date.
- The grounds on which landlords can seek to repossess properties will be amended and strengthened so landlords can still recover their property (including where they wish to sell or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour or repeated rent arrears.
- Stronger protections against backdoor eviction by ensuring tenants can contest excessive above -market rents increases which are purely designed to force them out. Landlords will still be able to increase rents to market level, however tenants will be able to appeal to an independent tribunal which will determine the market rent of the property.
- The creation of a new Private Rented Sector Ombudsman which will provide fair, impartial, and binding resolution to many issues and prove quicker, cheaper, and less adversarial than the current court system.
- A Privately Rented Property Portal will be set up to help landlords understand their legal obligations and demonstrate compliance. It will also provide better information to tenants, helping them make informed decisions when entering into a tenancy agreement. It will also support local councils’ enforcement activity.
- Tenants will have the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.
Other commitments from the White Paper not been included in this Bill:
- To apply the Decent Homes Standard to the private rented sector.
- To make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children.
- Strengthen local councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity – to help target criminal landlords.
Further legislation is planned to implement changes in these areas.
Housing Ombudsman Spotlight Report – Knowledge and Information Management
This latest spotlight report from the housing ombudsman is a major wake-up call for the sector highlighting widespread poor practice in record keeping and data management with major implications for service delivery.
Poor information management is a reoccurring theme in the Ombudsman’s casework, often slowing down investigations as landlords are unable to provide background information and evidence relating to cases. According to the report ‘complaints can be an exceptionally strong indicator of data gaps and information mismanagement’.
Accurate records and data management are the essential starting point; if the input data is poor, incorrectly recorded or the management systems inadequate, any use made of this data will be inherently flawed.
Service failures are generally linked to missing, inaccurate or misused resulting in a lack of appropriate responses and timely action. Using data from 2022/23, the report highlights a series of case studies to demonstrate key areas of poor performance and the consequent negative impact on residents. Examples include a disabled woman left without a suitable toilet for more than a year, and a resident having to endure water ingress for eight years because the landlord did not have a system to record customer communications. Another case involved a man losing 14 days annual leave because of appointment failings by the landlord.
Translating information and data into usable knowledge, insights, and action plans is vitally important and has a key role in governance providing assurance and contributing to business and financial planning. Interestingly, the report notes that even where a landlord has fulfilled its obligations, if it doesn’t have the data to evidence this, it is professionally vulnerable.
The report highlights the importance of governance and organisational culture to encourages clear expectations and management standards, with systems underpinned by clear quality assurance measures and performance management.
The report makes 21 detailed recommendations.
Social Housing Regulation Bill
The Bill is currently in ping-pong, having completed the Commons Report Stage on March 1st. The next stage on 27th June 2023 is the Consideration of Commons Amendments by the House of Lords. Once completed, the Bill is expected to receive Royal Assent before the end of this Parliamentary Session.
The Bill includes two late amendments:
Professionalisation: a requirements for senior housing managers and senior housing executives to hold or be working towards a Level 4 or 5 housing management qualification. This is in addition to measures already introduced through the Bill for new ‘competence and conduct’ regulatory standards.
‘Awaab’s Law’: setting timeframes for landlords to investigate and repair hazards in tenant’s homes.
Once the Bill achieves Royal Assent the way will be clear for the RSH to consult on the detail of the new consumer regulation regime.
Looking ahead
Other linked consultations planned for later in the year include:
- Consultation on time limits for repairs (Awaab’s Law)
- Consultation on minimum energy efficiency standards
- Consultation on professionalisation, competence and conduct standards
- Consultation on the future of the rent standard and call for evidence on a catch-up mechanism following rent cap applied in 2023
- Consultation on updated Decent Homes Standard proposals
Recent Publications
Critical Friends: What tenant scrutiny brings to landlord performance – NFA April
This timely NFA Report focuses on the importance of tenant scrutiny as a key tool in good housing management within the ALMO sector which is even more relevant as the Regulator of Social Housing will include feedback from tenants in its new inspections regime.
This report goes beyond a review of current scrutiny models approaches employed within the ALMO sector. The authors have spoken to tenants who are involved in scrutiny to understand why they do it and what makes it work. Much of the feedback comes down to the relationship they have with their landlord, based on honesty, trust, openness, good communication and organisational follow through that recognises the value of the work of scrutiny panels to the organisation.
Download a copy of the report here.
The NFA has also published their Annual Review, and Annual Survey which provide an interesting overview of the current state of play in the ALMO sector.
Diary Date – NFA Webinar
The NFA is holding a webinar on Wednesday 21st June 2023 on ‘Regulating Consumer Standards and learning from pilot inspections’. Now that the RSH has has completed the first round of pilot inspections across the country, there is an opportunity to take stock. This is an opportunity hear from the only council with an ALMO to be inspected so far. The event is open to CWAG members. Further details
CWAG Newsletter – April 2023
This Update includes the following
CWAG Members Survey 2023
This year the annual members survey focussed on how councils and their ALMOs are responding to the introduction of enhanced consumer regulation. The survey aimed to explore how different organisations are preparing for the changes, highlighting the specific issues and challenges involved, with the aim of identifying key trends and sharing good practice.
The survey response rate was 86%. Survey returns provide useful insights into the sector’s preparations in advance of new regulatory arrangements which are due to go live in April 2024. The CWAG Client Officer Group will be reviewing the survey in more detail at their next meeting. In the meantime if you would like more information on the survey, please contact the Policy Officer.
Set out below are some of the headline findings from the survey:
Survey Findings
1. ALMO Reviews
Most CWAG member councils have reviewed or are planning to review their ALMO management arrangement. Reviews are generally focused on ensuring council and ALMO services are better aligned, with responsibilities and reporting lines clearly defined.
- 16% of respondents are currently undertaking a review of the ALMO,
- 74% of respondents reported a recent or planned ALMO review,
- 10% of respondents are not planning a review at this time.
2. Changes to the Client Team
42% of respondents are recruiting additional staff to strengthen the client team whilst others reported that they are reassessing client-side resources and current roles, including how existing staff are deployed.
Virtually all authorities reported that they are reviewing and augmenting data collection and reporting arrangements. Issues include enabling real time reporting and regularising enhanced senior level scrutiny and oversight arrangements.
Some councils are reviewing certain functions currently delegated to the ALMO, but this is not a general trend.
3. Changes to reporting and accountability structures
Authorities are also reviewing existing systems and reporting arrangement, making changes to improve information flows, oversight, and assurance. Councils are looking critically at each element of performance and how they are getting assurance.
Current examples include:
- Specialist governance and systems reviews
- Additional internal audit checks with a focus on consumer standards
- Bringing KPIs into alignment with TSMs
- Additional information and reporting for Council Members
- New Council /ALMO structures to review key elements of performance.
- Use of council scrutiny and audit panel
4. Collection of Tenant Perception Information for TSMs
The survey highlights different approaches to the collection of tenant perception information. 61% of respondents indicate that this exercise will be undertaken by a specialist contractor. Arrangements vary with some councils leading on the commissioning arrangements in partnership with the ALMO whilst others have fully delegated this activity to the ALMO.
5.Preparation for In-Depth Assessments (IDAs)
78% of respondents indicated that they have used the checklist from the CWAG/NFA report ‘Excellence in management and partnership’ to review their current arrangements in preparing for changes to regulation.
26% of respondents have commissioned an external ‘health check’ as part of their IDA preparations.
Parliamentary Committee to investigate financial sustainability of social housing sector
On 28th March 2023 the Levelling Up Housing and Communities Committee launched an enquiry, including a call for evidence, into the financial resilience of the social housing sector in England.
This follows the Committee’s earlier ‘Regulation of social housing’ report (July 2022) which identified evidence of ‘appalling and unsafe’ conditions in some social housing. The aim of this enquiry is to examine the financial resilience and resources available to the sector given the increasingly challenging operating environment.
Issues that will be considered include the impact of inflation, high energy costs and other funding challenges. Social landlords are facing significant pressures to increase investment in the maintenance and improvement of their existing stock. A key concern is the extent to which tackling issues such as damp and mould, energy efficiency, fixing defects and delivering on new building and fire safety regulations will impact on the delivery of much needed new affordable homes.
The enquiry will also consider the policy and regulatory challenges facing DLUHC and the Regulator of Social Housing in ensuring policy on social and affordable housing is appropriately focussed and adequately addressing the diverse issues and challenges facing the sector.
Call for evidence – submissions to the Enquiry can be made up to 12th May 2023.
Older Person’s Housing Taskforce
Proposals for an Older Persons Housing Taskforce set out in the Levelling Up White Paper (February 2022) look set to get underway with the recent appointment of Professor Julienne Meyer, a leading expert on care for older people as the taskforce Chair.
The new taskforce will run for around 12 months; it will report and make recommendations to Government on improving the choice, quality, and security of housing for older people. It will also consider evidence relating to regional disparities in the supply of appropriate and specialised housing for older persons.
The taskforce will bring together expertise from the social housing and retirement sector, local government, health, and adult social care as well as investment specialists and developers.
4 Million Homes Programme
Following the earlier Make Things Right campaign, the 4 Million Homes Programme is a further DLUHC funded initiative which aims raise tenant awareness of their rights and rebalance power between residents and landlords.
Programme publicity emphasises that it will help tenants stand up for their rights and where necessary provide guidance on how to deal with difficult landlords. Tenants will also gain knowledge on how to form and get involved in residents groups to influence and shape the services they pay for.
The programme will provide information, guidance, and training on residents rights. Training events will begin in May 2023 and run over 24 months starting with ‘Exploring your right to engage and be heard’, advising residents of their rights and how to make complaints.
The campaign website www.fourmillionhomes.org signposts guidance, training events and webinars.
Diary Date - Finance and Business Planning Meeting – Tuesday 6th June 2023
Steve Partridge – Savills Director of Housing Consultancy will be leading this event for finance officers and others with an interest in HRA strategy and business planning. This will be an interactive meeting focussing on issues for the next budgeting and business planning round.
The event is a free event that is open to CWAG members – please note the date in your diary. Booking arrangements will available shortly.
Recent Publications
Research into Expenditure within the Housing Revenue Account - LGA, ARCH, NFA
This is the third and final Savills research report commissioned by the LGA, ARCH and the NFA as part of a wider examination of the financial issues and pressures facing Housing Revenue Accounts. The report looks in detail at the specific factors currently driving the growing disparity between available resources and increasing financial demands. The report highlights the vulnerability of HRAs which are likely to move into deficit over the next couple of years.
The report is available to download from the NFA website.
Progress Update – Social Housing Regulation Bill
The Bill will provide the legal basis for implementing measures in the 2020 Social Housing White Paper. The intention is to empower residents, provide greater redress, better regulation and improve the quality of social housing. By strengthening the regulatory regime for social housing, the Bill aims to ensure landlords are held to account for their performance and focus more effectively on addressing the needs and concerns of tenants.
The Bill started out in the House of Lords in June last year, completing first and second readings in the House of Commons by November 2022. The Bill has now reached its third reading in the House of Commons (having already completed its third reading in the Lords). At this stage no further amendments can be made to the Bill. The final stage of the legislative process will see the Bill returned to the Lords for a final debate and consideration of amendments. Royal Assent is expected before the end of the current Parliamentary session.
Important amendments added to the Bill:
Awaab’s Law
On 9 February 2023, the Secretary Of State introduced an amendment known as ‘Awaab’s Law’, which will require landlords to investigate and fix damp and mould in their properties within specified timeframes. A consultation will be held later this year to set the timeframes within which landlords will have to investigate hazards and make repairs.
Professionalisation
The Bill will introduce new rules intended to protect residents and raise standards in the sector. Managers in the social housing sector will in future be required to have a minimum set of professional qualifications.
Amendment 47 requires the regulator to set out professional standards ensuring that those with management responsibilities within the social housing sector have, or are working towards getting, professional qualifications.
The change is intended to bring social housing into closer alignment with other sectors such as social work, teaching and health.
Complaints and the Housing Ombudsman
The Bill identifies a new responsibility on the Regulator of Social Housing (RSH) to set standards for providers on the handling of complaints. In addition, the Housing Ombudsman will be granted powers to issue and publish guidance on good practice in the sector.
CWAG Newsletter – March 2023
This Update includes the following
Social Housing Complaints – ‘Make Things Right’ Campaign
The Government has launched a new publicity campaign to raise awareness amongst social housing tenants about how to complain about poor housing conditions and disrepair.
The campaign features an advertising campaign on local radio and digital channels as well as social media platforms, Facebook, Instagram and Twitter with content available in six languages. The campaign will also fund training for Citizens Advice staff in two pilot areas (London and the North West) so they can more effectively support residents who have issues with disrepair and poor quality housing.
The campaign website Social Housing Complaints – Make Things Right signposts tenants through the complaints process, explaining the different stages, and what to expect from their landlord in response. If having made a complaint using the landlord’s complaints process, the issue has not been satisfactorily resolved, there is advice on escalating the complaint to the Social Housing Ombudsman.
For landlords there is a comms toolkit and other resources that can be accessed via the GOV.UK website.
Social Housing Regulation Bill – Progress Update
The Bill will provide the legal basis for implementing measures in the 2020 Social Housing White Paper. The intention is to empower residents, provide greater redress, better regulation and improve the quality of social housing. By strengthening the regulatory regime for social housing, the Bill aims to ensure landlords are held to account for their performance and focus more effectively on addressing the needs and concerns of tenants.
The Bill started out in the House of Lords in June last year, completing first and second readings in the House of Commons by November 2022. The Bill has now reached its third reading in the House of Commons (having already completed its third reading in the Lords). At this stage no further amendments can be made to the Bill. The final stage of the legislative process will see the Bill returned to the Lords for a final debate and consideration of amendments. Royal Assent should follow shortly after this and is likely before the Easter recess.
Important amendments added to the Bill:
Awaab’s Law
On 9 February 2023, the Secretary Of State introduced an amendment known as ‘Awaab’s Law’, which will require landlords to investigate and fix damp and mould in their properties within specified timeframes. A consultation will be held later this year to set the timeframes within which landlords will have to investigate hazards and make repairs.
Professionalisation
The Bill will introduce new rules intended to protect residents and raise standards in the sector. Managers in the social housing sector will in future be required to have a minimum set of professional qualifications.
Amendment 47 requires the regulator to set out professional standards ensuring that those with management responsibilities within the social housing sector have, or are working towards getting, professional qualifications.
The change is intended to bring social housing into closer alignment with other sectors such as social work, teaching and health.
Complaints and the Housing Ombudsman
The Bill identifies a new responsibility on the Regulator of Social Housing (RSH) to set standards for providers on the handling of complaints. In addition, the Housing Ombudsman will be granted powers to issue and publish guidance on good practice in the sector.
Savills RTB Research highlights scale of replacement shortfall
A recent report by Savills, commissioned by the Local Government Association, ARCH and the NFA has highlighted the urgent need to look again at the current Right to Buy scheme and in particular the introduction of more proportionate regionally sensitive discounts.
The volume of RTB sales increased significantly after discounts were increased in 2012 and replacement agreements have consistently failed to match losses. The notion of ‘one for one’ replacement has not been delivered anywhere in the country.
The data highlights that in many cases discounts have been at a level in excess of what was needed to enable the tenant to afford to buy and in some cases the discount was significantly more than the rent paid whilst they were council tenants.
The report also flags up major regional differences with disproportionate negative impacts on authorities in lower value areas in the North and Midlands where net stock losses are higher and the replacement rate lower. A key factor is the relationship between the level of receipts and replacement costs – only 4 authorities in the whole of the north and midlands regions collect receipts that are in excess of 30% of replacement costs.
Modelling suggests that under current arrangements projected sales are likely to be in the region of 100,000 properties between 2021 and 2030, whilst total replacements are unlikely to exceed 43,000, representing a net stock loss of 3.61% across the country for this period. As a consequence, the RTB scheme is effectively subsidising one household’s home ownership over another’s access to social housing.
The report makes a number of policy suggestions including:
- Introducing a regional approach to setting discount rates – evidence suggests discounts in the north, and in many parts of the midlands, are higher than required to achieve the kind of take up the government seeks through the RTB scheme.
- Starting minimum discounts at a lower rate which reflects the amount of time the tenant has rented the property (or for newer properties since the property has been built) would offer improved value for money and a better match with the original objectives of the RTB scheme.
- The automatic annual CPI uplift of discount rates should be reconsidered as it is inconsistent with the current falling housing market and likely to cause further distortions.
- RTB properties should be reserved for home ownership. Purchasers should covenant to live in the property as a home owner and on resale the property should be offered first to the local authority.
- There is a strong case for allowing the cost floor to be increased by inflation, specifically linked to an index based on construction cost inflation, in order to ensure that the cost floor mechanism serves its purpose.
The full report is available on request from the LGA – see LGA website
CWAG Client Officer Group
The group met on 6th March 2023 to discuss issues relating to the client role and how councils are preparing for changes to regulation. The meeting included a presentation and case study from Shropshire Council regarding the work currently underway to update monitoring and performance management arrangements in preparation for enhanced consumer regulation.
Further meetings are planned as the new regulatory arrangements are rolled out. If you would like further information about the group and future meetings, please contact the Policy Officer.